From Our “Ask a Question” Mailbag: “I am an immigrant from China. I read your articles, and could you please write an article about Trusts Explained for Immigrants?” Trusts Explained for Immigrants. After living for a year in Beijing, spending several years in Europe and being married to a Korean […]
Tag: Education Trust
From Our “Ask a Question” Mailbag: “Please give me Examples of Estate Planning Protecting your Heirs.” Examples of Estate Planning Protecting Your Heirs: Example of an Education Trust Protecting Your Heirs. Mrs. Philadelphia wished to make sure her Grandchildren had enough money to pay for college. She instructed her Estate […]
From our “Ask a Question” mailbag: I created a Revocable Living Trust to avoid probate with the Philadelphia Register of Wills, but I have decided that I would like to form a trust that would pay for my nieces college education. Can I do this using my Revocable Living Trust?
You can certainly form an Education Trust within the terms of your existing Revocable Living Trust. A Living Trust is divided into two main parts; the terms that apply when you are alive and the terms that apply after your death.
What I can do is draft an amendment to your existing Revocable Living Trust adding the Education Trust into the “what happens after your death” portion.
Only a little over three months remain to maximize estate tax and gift tax opportunities that are scheduled to disappear in 2013. There is still time, but if you are going to act you need to start working with your estate planning lawyer soon.
Never have the Gift Tax and Estate Tax exemptions been higher than they are currently. The Federal Estate and Gift Tax Exemptions are currently $5,120,000.00. If congress takes no actions, these exemptions fall to $1,000,000.00 in 2013. This change exposes to taxation an additional $4,120,000 to those who die or gift in 2013 vs. 2012, increasing the tax due by hundreds if not millions of dollars.¹
